GUIDEPOST MONTESSORI 20-YEAR CORPORATE LEASE 2-3% ANNUAL INCREASES LARGEST MONTESSORI IN THE U.S., FL
Overview GUIDEPOST MONTESSORI 2402 AND 2230 BLVD,, FL 33020 $4,965,000 PRICE 6.75% CAP LEASABLE SF 13,400 SF LAND AREA 1.27 Acres LEASE TYPE Corporate LEASE TERMS 20 Years YEAR BUILT 2018 PARKING 43 Spaces 20-year NNN lease with corporate guarantee and 3% annual rent increases Largest Montessori in U.S. Just Received $80M Valuation Internet & Economic Resistant Educational Use Unit level enrollments in excess of projections (Speak with Agent) Perfect location for Montessori 1.0 mile from Central Business District and a block from downtown This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Tenant is paying market rents for the area $25/ft. 2
Investment Highlights THE PROPERTY is an opportunity to make an investment into the rapidly growing and internet proof education segment. The tenant has executed a 20-year corporate lease, and is responsible for all operating expenses and maintenance except for roof and structure. The lease has inflation-friendly annual rent increases of 2% in years 1-2 and 3% increases in years 3-20 and throughout the option periods. Guidepost spent over $1M acquiring an existing Montessori for the business, FF&E, and build out of the spaces. The investment comprises of 3 parcels - 2 separate buildings and a play area. The value of the two buildings is enhanced by the licensing, zoning, and special use permits for the educational uses, which are difficult to obtain. Building 1 is for the day care, and building 2 / play area are for the elementary and middle school students providing diversity to the tuition sources. THE LEASE is guaranteed by Guidepost Montessori s parent company, Higher Ground Education (HGE). They have strong private equity backing and are located in good income, dense, infill markets across the U.S. such as Palo Alto, Laguna Hills, Chicago, Brooklyn, and Raleigh to name a few. Contact the team JOHN ANDREINI jandreini@capitalpacific.com PH: 415.274.2715 CA BRE# 01440360 JUSTIN SHARP jsharp@capitalpacific.com PH: 415.274.7392 CA BRE# 01895013 SURROUNDING RETAIL IN CONJUNCTION WITH FL LICENSED BROKER: John Park Berkshire Realty, LLC john@berkshire-realty.com GUIDEPOST MONTESSORI HAS 17 LOCATIONS IN 7 STATES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 3
299,000 95 441 FLO TURRIDA NPI S KE 1 51,000 820 858 PINES BOULEVARD MEMORIAL HEALTHCARE SYSTEM 30,000 H&R BLOCK CENTRAL BUSINESS DISTRICT MEMORIAL REGIONAL HOSPITAL SOUTH BOULEVARD 820 (1 MILE) 95 HALLANDALE BEACH BOULEVARD CITY HALL (0.4 MILES) 858 AVENTURA HOSPITAL AND MEDICAL CENTER HIGH MIDDLE 441 Zoomed-Out Aerial FORT LAUDERDALE INTERNATIONAL AIRPORT MT SINAI MEDICAL CENTER 1 FORT LAUDERDALE MIAMIDADE COUNTY 10 MILES GOLF COURSE 95 281,000 ELEMENTARY CITY OF NORTH MIAMI BEACH MIDDLE 826 TENNIS CENTER NE 167TH STREET NE 163RD STREET This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. HIGH 74,000 826 1 4
N 24TH AVENUE Zoomed-In Aerial 95 ACADEMY GOLF COURSE 74,000 FORT LAUDERDALE GOLF COURSE 10 MILES MEMORIAL HEALTHCARE SYSTEM H&R BLOCK ELEMENTARY CITY HALL CITY OF BLDG 2 BLDG 1 1 GOLF COURSE CENTRAL BUSINESS DISTRICT YOUNG CIRCLE PARK H&R BLOCK 820 820 BOULEVARD BROWARD COUNTY 51,000 299,000 ACADEMY ACADEMY 95 S 24TH AVENUE MEMORIAL REGIONAL HOSPITAL SOUTH CITY OF BOULEVARD ART AND CULTURE CENTER 30,000 KINDRED HOSPITAL ELEMENTARY 1 ELEMENTARY GOLF COURSE BROWARD COUNTY 824 CITY OF MIDDLE PEMBROKE ROAD PEMBROKE ROAD HIGH This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 5
Surrounding Retail 6
Interior Photos 7
Income & Expense SURROUNDING RETAIL PRICE $4,965,000 Price Per Square Foot: $370.52 Capitalization Rate: 6.75% Total Rentable Area (SF): 13,400 Lot Size (AC): 1.27 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $25.01 $335,132 Effective Gross Income $25.01 $335,132 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $335,132 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 8
Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY TENANT NAME SQ. FT. CURRENT RENT MONTHLY RENT YEARLY RENT MONTHLY RENT/FT YEARLY RENT/FT Guidepost Montessori 13,400 1* 20 $335,132 $27,928 $335,132 $2.08 $25.01 2% annual increases in years 1-2 3% annual increases in years 3-20 Option 1 21 25 $56,751 $681,006 $4.24 $50.82 Option 2 26 30 $65,789 $789,472 $4.91 $58.92 Option 3 31 35 $76,268 $915,215 $5.69 $68.30 Option 4 36 40 $88,415 $1,060,985 $6.60 $79.18 TOTALS: 13,400 $335,132 $27,928 $335,132 $2.08 $25.01 *Rent commenced September 1st, 2018 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 9
Lease Abstract EXPENSES TAXES Tenant directly responsible for all taxes TENANT BUILDING SF LEASE TYPE TERM OPTIONS Guidepost Montessori 13,400 SF Corporate NNN 20 Years Four 5-year options CAM Tenant directly responsible for all common area maintenance INSURANCE Tenant directly responsible for maintaining insurance RENT BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 1-20 $28,468 $341,611 2% annual increases in years 1-2 3% annual increases in years 3-20 UTILITIES Tenant is directly responsible for utilities LANDLORD S OBLIGATIONS Roof and structure OPTION RENTS DATE RANGE ANNUAL RENT #1. 21-25 3% annual increases #2. 26-30 $789,472 #3. 31-35 $915,215 #4. 36-40 $1,060,985 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10
Tenant Overview ABOUT GUIDEPOST MONTESSORI Guidepost Montessori is the largest Montessori in the United States. They have 24 schools across the country including Palo Alto, Laguna Hills, Chicago, Brooklyn, Dallas, and Raleigh to name a few. What separates Guidepost from other schools is that they provide education from ages 10 weeks through age 18, children are able to learn through a sequenced education starting with day care, through elementary school, middle school, then high school. The value to parents and children is that there is a single source of education and relationships that are built through a child s development period, which is a model that developmentally provides better student outcomes than single age education. 17 LOCATIONS IN 7 U.S. STATES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Higher Ground is based in Lake Forest, California, and is modernizing and mainstreaming the Montessori movement using cutting edge educational technology and educational programs that are child centered. Jeff Bezos (Founder and CEO of Amazon) recently committed $2 billion to Montessori based education. They have backing from Learn Capital, the largest venture capital group in the educational technology space and the Walton Foundation (Wal-Mart Founder) demonstrating the credibility of the organization. 11
Site Plan - 2230 Hollywood Blvd 7,152 RENTABLE SF 0.47 ACRES 29 SPACES MONUMENT SIGN S 24TH AVENUE S 24TH AVENUE 30,000 BOULEVARD BOULEVARD GATES BLOCK WALL BLOCK WALL ALLEY BLOCK WALL BRANCH LIBRARY CITY HALL This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 12
Site Plan - 2402 Hollywood Blvd BOULEVARD METAL GATE METAL FENCE 6,326 RENTABLE SF 0.77 ACRES 14 SPACES S 24TH AVENUE S 24TH AVENUE METAL FENCE S 24TH AVENUE 30,000 BOULEVARD GATE GATE METAL FENCE METAL GATE BRANCH LIBRARY ALLEY METAL FENCE CITY HALL METAL FENCE FUTURE PLAYGROUND METAL FENCE This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. METAL FENCE 13
Demographics POPULATION 1-MILE 3-MILES 5-MILES FORT LAUDERDALE (10 MILES) 2010 24,363 153,299 340,762 2018 26,128 165,237 368,924 2023 27,870 174,455 388,705 2017 HH INCOME 1-MILE 3-MILES 5-MILES Average $52,875 $69,366 $71,523 TOP EMPLOYERS IN MIAMI MSA EMPLOYER # OF EMPLOYEES MIAMI (21 MILES) Miami-Dade Public Schools 40,000+ Miami-Dade County 25,502 Federal Government 19,200 Florida State Government 17,100 University of Miami 12,818 THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS IS OVER $71K This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 14
Location Overview, FLORIDA MIAMI is located on Florida s easy coast between only 21 miles from Miami and 10 miles from Fort Lauderdale, and is within the Miami-Fort Lauderdale-West Palm Beach metropolitan area. The beachfront community retains a charming, small town atmosphere despite being one of the principal cities in the Miami metropolitan area. It s home to over 60 parks, 7 golf courses, 7 miles of beaches, and a 2.5 mile promenade along the Atlantic Ocean called the Hollywood Beach Broadwalk. Downtown Hollywood has a lively entertainment, commercials, and cultural district with dozens of bars, restaurants, live music, art exhibits, and much more. MIAMI is located on the Atlantic coast in southeastern Florida and is the county seat of Miami-Dade County. The 42nd largest city in the United States, with a population of 463,347, it is the 8th largest metro area with 6.06 million residents. ABOUT MIAMI TOURISM MIAMI is home to many entertainment venues, theaters, museums, parks and performing arts centers. The city s culture reflects its diverse population with heavy influences from the Caribbean and Latin America. Tourism in Miami brings in over 15.5 million visitors and $36.6 billion a year, and it s not stopping there. Miami is investing $615 million to grow the tourism sector through the expansion and renovation of the Miami Beach Convention Center due to finish in the summer 2018. 6.06 MILLION MIAMI MSA POPULATION (ESTIMATED) This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 15
Miami-Dade Economy The city is a major center and leader in finance, commerce, culture, media, entertainment, the arts, and international trade. Downtown Miami and South Florida are home to the largest concentration of international banks in the United States, and many large national and international companies. The Civic Center is a major center for hospitals, research institutes, medical centers, and biotechnology industries. For over 20 years, the PortMiami, known as the Cruise Capital of the World, has been the number one cruise passenger port in the world. The port has an annual economic impact of $27 billion, and supports approximately 207,000 jobs through combined commercial trade and cruise business. Miami International Airport is one of the world s busiest airports with 105 airlines serving 160 destinations. MIA generates business revenue of $33.7 billion annually, and welcomes 70% of all international visitors to Florida. Passenger and cargo traffic are trending upward, and MIA served a record 44.35 million passengers in 2015. Due to its proximity to Latin America, Miami serves as the headquarters of Latin American operations for more than 1,100 multinational corporations. Among Miami s top corporate headquarters are FedEx Latin America, Medtronic Latin America, Telefonica, UPS Latin America & Caribbean, and Univision. Miami is also home to 74 consulates, a multicultural workforce drawn from more than 100 countries, and is the second largest international banking center in the U.S. GREAT FOR BUSINESS (2016 DATA) #2 INTERNATIONAL BANKING CENTER IN THE U.S.. #2 MOST CONNECTED CITY IN THE U.S.. (FDI) #3 TOP EMERGING TECH HUB (MASHABLE) #3 JOB GROWTH IN FINANCIAL SERVICES (HEADLIGHT DATA) #8 MOST BUSINESS FRIENDLY CITY (FDI) NO PERSONAL INCOME TAX & LOW CORPORATE INCOME TAX LOWER COST OF LIVING THAN COMPARABLE GLOBAL BUSINESS CENTERS FORTUNE 1000 COMPANIES #103 WORLD FUEL SERVICES (ENERGY) #260 LENNAR (ENGINEERING & CONSTRUCTION) #394 RYDER SYSTEM (TRANSPORTATION) #502 MAS TEC (ENGINEERING & CONSTRUCTION) HOME TO GLOBAL MULTINATIONALS This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 16
We d love to hear from you. JOHN ANDREINI jandreini@capitalpacific.com PH: 415.274.2715 CA BRE# 01440360 JUSTIN SHARP jsharp@capitalpacific.com PH: 415.274.7392 CA BRE# 01895013 IN CONJUNCTION WITH FL LICENSED BROKER: John Park Berkshire Realty, LLC john@berkshire-realty.com CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM: ZEB RIPPLE JOHN ANDREINI ZANDY SMITH CHRIS KOSTANECKI JOE CACCAMO RICK SANNER CHRIS PETERS DAVE LUCAS JACK NAVARRA Copyright 2018 Capital Pacific Partners JUSTIN SHARP This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. CAPITALPACIFIC.COM